Sunderland plant set European productivity record

The UK has the two most productive car plants in Europe according to World Markets Research Centre's annual European Automotive Productivity Index.
World Markets Automotive, a division of World Markets Research Centre, yesterday issued its annual European Automotive Productivity Index. Nissan's Sunderland plant once again topped the industry list for Europe, more than 40% ahead of the rest of the field. Productivity at the Nissan plant soared in 2000, increasing the number of vehicles per employee by 30%.

The improvement at Nissan was achieved as the company succeeded in slightly reducing its workforce while, at the same time, adding a third model, the Almera.

Output increased from 271,157 in 1999 to 327,701 in 2000.

The ratio of 122 cars per employee sets a new European productivity record.

The achievement followed a period of uncertainty for the plant.

Renault, which had acquired a stake in Nissan, recently considered transferring production of Nissan models from Sunderland to its existing plant at Flins in France.

The company claimed it achieved higher levels of output by using a young, well-motivated workforce, Nissan's lean Japanese manufacturing model and the established practice of continuous improvement, or 'kaizen'.

* Toyota Burnaston, UK was the second most productive plant with an output of 86 cars per employee, highlighting the dominance of the Japanese car manufacturers.

Earlier this year Toyota announced its intention of moving production of the 3-door Corolla from Japan to the UK.

This would lead to a 50,000-unit increase in output in 2002.

* Renault topped the manufacturers' league with six out of the top 15 most productive plants surveyed, while Spanish car workers also showed high productivity with five of the twelve top plants surveyed.

* Honda's Swindon plant slipped from number two in the 1999 index to number 26 in 2000, with production falling from 83 cars per employee to 55.

The company attributes this partly to disruption following the full model change of the Civic 5-door and to the introduction of the CR-V.

Prospects for the plant have also been undermined by the company's decision to repatriate production of the Accord back to Japan, and by cancellation of an earlier plan for UK-build of the new small Logo/City range.

Honda will, however, add a second assembly line at Swindon from September this year.

* Based on the plants surveyed, productivity in Europe rose from a plant average of 52.6 cars per employee in 1997 to a record 60.1 in 1999.

However, in 2000 the car market weakened and manufacturers were slow to reduce their manufacturing headcount.

This caused a slight decline to an average of 58.8 cars per employee.

Forecasts of a further 5% drop in Europe's car market this year could put productivity under increased pressure.

Ian Robertson of World Markets Research Centre says: 'For the first time the report sees a UK plant competing with the top global performers.

A record of 165 cars per employee was set by Daewoo's Changwon plant in South Korea in 1998.

When the Global Index is issued later this year we will be able to see whether Nissan, Sunderland can outstrip all other plants.

What this year's index also shows is that intense competition is accelerating the adoption of new working practices to boost quality and efficiency.' About World Markets Automotive World Markets Automotive is the latest industry-specific intelligence service from World Markets Research Centre (WMRC plc).

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